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E-procurement systems that manage the process of requisition to purchase were among the first major applications of Internet technology which helped to improve the organization’s sourcing process. This article explains the role of e-procurement in e-business and details about the steps to develop an effective e-procurement strategy.
National
Office for the Information Economy classifies e-commerce
as "every type of business transaction or interaction
in which the participants prepare or conduct business
electronically." This covers a wide range of
activities, ranging from the use of electronic mail,
through to Internet-based sales and transactions and
Web-based marketing. Dr. Roger Clarke, Principal,
Xamas Consultancy Pty Ltd., Canberra says that electronic
business is a useful term for "the conduct of
business with the assistance of telecommunications
and telecommunications-based tools" and defines
electronic commerce as "the conduct of commerce
in goods and services, with the assistance of telecommunications
and telecommunications-based tools." Different
people use different terminologies such as "electronic
trading", "electronic procurement",
"electronic purchasing", "electronic
marketing", "electronic banking" and
so on. From the above definition we can say that electronic
commerce is often used in a much broader sense, to
mean essentially the same as "electronic business".
In other words, e-commerce includes purchases of goods,
services and other financial transactions in which
the interactive process is mediated by information
or digital technology at both, locationally separate,
ends of the interchange. Here "transaction"
includes both goods and services required and committed
to buy.
Businesses
can use e-mail as a rapid and reliable way to communicate
with suppliers or to receive and respond to customer
queries like quotations, product information, accept
orders, execute deliveries, and collect dues from
the customers. E-business can make operations more
efficient through a greater use of electronic bookkeeping
and records management. Supplies received through
Internet reduces storage cost, space and serves customers
faster and more effectively. Online banking services
such as electronic bill payment, and funds transfer
improves the efficiency of business. These services
are offered by most of the financial institutions.
The manufacturers are able to sell their products
easily to buyers via Internet. |
